Reliance Group, owned by Anil Ambani, Discloses Enforcement Directorate Action
Anil Ambani’s Reliance Group has issued a detailed clarification following the Enforcement Directorate’s (ED) recent raids on its premises in Mumbai and Delhi. These raids were part of a broader money laundering probe under the Prevention of Money Laundering Act (PMLA), targeting alleged irregularities involving loans between Yes Bank and Reliance Group companies.
Official Statement on the ED Action
In a white paper released on Thursday, 24 July, Reliance Group responded to media reports suggesting the ED had searched more than 35 locations across two cities. These investigations reportedly pertain to transactions involving Yes Bank and Reliance Home Finance that date back over eight years.
“Reliance Group wishes to clarify certain recent media reports concerning the actions initiated by an enforcement agency,” the statement said. “These reports appear to pertain to allegations in relation to transactions involving Yes Bank and Reliance Home Finance, which are more than eight years old.”
Alleged Loan Fraud and Company Response
According to media reports, the ED’s raids were linked to a potential loan fraud of approximately ₹3,000 crore, allegedly involving Anil Dhirubhai Ambani Group companies. The agency also investigated the financial dealings of about 50 companies and 25 individuals connected to the case.
1. Loan Sanction Clarification
The group asserted that loans extended to certain private entities connected to the Yes Bank promoter were sanctioned after proper evaluation. They asserted that they fully secured these loans and have since repaid them in full, including interest.
“Loans extended by Reliance Home Finance Limited (RHFL) to certain private companies by the promoter of Yes Bank were sanctioned on merit, after following due process,” the statement read. “These loans were fully secured and have been fully repaid, including interest, and the outstanding balance is zero.”
2. Allegations of Procedural Violations
The ED reportedly found violations in the loan approval process, including backdated Credit Approval Memorandums (CAMs) and a lack of due diligence. In response, the company maintained that all decisions followed standard operating procedures and were in compliance with applicable financial regulations.
“Yes Bank had granted loans to Reliance entities after following the due process. The entire exposure of Reliance Group companies is fully secured and was undertaken strictly in the ordinary course of business,” the company noted.
3. On Regulatory Concerns
In response to questions raised about Reliance Home Finance Limited’s (RHFL) lending practices, the Reliance Group noted that previous regulatory findings have already been addressed in formal proceedings. The company emphasized that it has followed the legal process to challenge past rulings and awaits a through proper judicial channels.
“All relevant issues have been presented before the appropriate authorities, and the legal process is currently underway,” the group stated.
Debt Resolution and Group Composition
Reliance Group also pointed out that the debt resolution process of Reliance Home Finance, led by Bank of Baroda, has been completed following a Supreme Court ruling in March 2023.
In a notable clarification, the company emphasized that both Reliance Communications (RCOM) and Reliance Home Finance (RHFL) are not part of the core Reliance Group structure.
“RCOM and RHFL are not part of the Reliance Group,” it reiterated.
